Post on 24-Apr-2015
description
CREDIT BUREAU ERRORS-BIG PEOPLE
PROBLEMS
Aulia Puspa G - 11/5/2013
Aulia Puspa G - 11/5/2013
Credit BureauA credit bureau is a giant record keeper that stores information on almost every adult in the United States. Information includes address, employment, and most importantly, payment history.
Aulia Puspa G - 11/5/2013
Assess the business impact of credit bereaus’ data quality
problems for the credit bereaus, for lenders, for
individuals
Aulia Puspa G - 11/5/2013
For Credit BereausCredit bereaus are responsible for credit report errors.
They have to dispute with customer’s complain.
They have to spend more money for data processing center to send customers protests and evidences.
Aulia Puspa G - 11/5/2013
For LendersLenders use information to assess a person's credit worthiness.
Making wrong judgement in credit approval.
Losing potential customers.
Aulia Puspa G - 11/5/2013
For Individuals
Credit denial.Job denial.
Aulia Puspa G - 11/5/2013
Are any ethical issues raised by credit bereaus’ data quality problems?
Aulia Puspa G - 11/5/2013
Validity and Reliability: Imperfect data leads to imperfect matches.
Privacy: credit bereaus collect and sell customer’s personal information.
Accessibility: The banks have no obligation to investigate the dispute when the consumer tries to contact the lender that made the error on their own.
Integrity: The summaries of complaint by the third party-contractor are often too brieft
Aulia Puspa G - 11/5/2013
Analyze the management, organization, and technology factors responsible for credit
bereaus’ data quality problems
Aulia Puspa G - 11/5/2013
ManagementThe credit bureaus collect personal information and financial data from a variety of sources.
The data are aggregated and stored in massive databases maintained by the credit bureaus.
Lack of information management.
Aulia Puspa G - 11/5/2013
OrganizationLack of the good men in organization.
Lack of coordination between each organizations.
Aulia Puspa G - 11/5/2013
TechnologyThe credit bureaus use an automated e-OSCAR (Electronic Online Solution for Complete and Accurate Reporting) system to forward consumer disputes to lenders for verification.
Aulia Puspa G - 11/5/2013
What can be done to solve these problems?
Aulia Puspa G - 11/5/2013
Credit Bereaus
Data quality auditData cleansing
Aulia Puspa G - 11/5/2013
Lenders
Checking carefully the credit application.
Aulia Puspa G - 11/5/2013
CustomersProviding complete and accurate information on a credit application.
Consistent monitoring of the credit report.
Aulia Puspa G - 11/5/2013